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US markets end flatly following widespread volatility

Last updated: 16:30 21 Sep 2021 EDT, First published: 07:06 21 Sep 2021 EDT

Market preview

4:10pm: NASDAQ only market in the green at close

The S&P 500 closed in the red shedding 3 points to close at 4,354; the Dow Jones Industrial Average had a more pronounced loss dropping 50 points to end the day at 33,919. The NASDAQ managed to edge out a gain adding 32 points to hold at 14,746.

Looking ahead, investors are anticipating Wednesday’s Federal Reserve policy news, which is likely to add headwinds until a clear path or decision is known.

12:10pm: US stocks up midday as investors buy the dip after Monday’s rout

US stocks gained midday as investors bought the dip a bit following the S&P 500′s worst day since May.

However, the market’s climb from Monday’s wipeout was tempered somewhat as investors awaited the end of the Federal Reserve’s two-day meeting, which kicked off Tuesday.

As of noon, The Dow Jones Industrial Average increased 229 points, or 0.67%, to 34,203. 

The broader-based S&P 500, which fell 1.7% on Monday for its worst day since May 12, gained 27 points, or  0.62%, to 4,385.

The tech-heavy Nasdaq, meanwhile, jumped 120 points, or 0.82%, to stand at 14,834.

Chris Beauchamp, chief market analyst at online trading group IG, concerns about the Fed may be holding back some investors

European markets have been much more adept at holding on to their gains today than their US counterparts, where pre-FOMC nerves have clearly put pressure on the S&P 500, Dow and Nasdaq,” he said.

“At first it seemed like the selling was done across the globe, but there is still a broad pocket of nervousness on Wall Street. Evidently investors there are concerned that the tapering announcement may come with hints of what the Fed might do next regarding rate increases as well, something much more concerning for markets. The powers of recovery displayed by Wall Street should not be underestimated however – a late-session recovery for the US yesterday helped stabilise markets globally, and a second one today could provide the fuel for another rebound that helps investors to stop worrying about the Fed.

11am: Proactive North America headlines:

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DGTL Holdings inks new $400k contract with Nasdaq listed online sports gaming client

FSD Pharma (CSE:HUGE, NASDAQ:HUGE) closes its all-stock acquisition of Canada’s Lucid Psycheceuticals

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Revive Therapeutics added to AdvisorShares Psychedelics ETF

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Co-Diagnostics (NASDAQ:CODX) says its Logix Smart ABC Test is authorized for use in Mexico

Cypress Development enters last preparation stages ahead of pilot plant commissioning

Fobi adds Draganfly (CSE:DFLY)’s Vital Intelligence Smart Vital System to its Venue Management System for events

Western Magnesium enters into LOI with US national preferred dolomite supplier

Nextleaf Solutions ships reorder to LDB after Glacial Gold products sell out, receives approval to sell in Saskatchewan

Plurilock receives US$418,000 order from US defense contractor

Belmont hires James Ebisch, a consultant geologist already familiar with its Lone Star copper-gold project

Ketamine One (NEO:MEDI.AQN) signs LOI with Veteran Services USA to open therapy center

Binovi Technologies appoints Marc Lakmaaker as its new interim CEO and director

Tribe Property Technologies to acquire property management portfolio in south-eastern British Columbia

Psyched Wellness (CSE:PSYC, FRA:5U9, OTCQB:PSYCF) initiates clinical sleep study on humans for structure/function claim for its AME-1 extract

Magna Mining (TSX-V:NICU) reports a new nickel-copper-PMG discovery at its Shakespeare project in Ontario

Versus Systems to power mobile fan engagement at the 2021 Military Bowl

AIM ImmunoTech advances bid to study Ampligen as therapy for Post-COVID-19 Cognitive Dysfunction

Willow Biosciences ramps up production titer; delivers corporate update

Star Royalties hails resource upgrade at Copperstone gold mine where it has a streaming deal

Else Nutrition introduces two new flavours of its Complete Nutrition Shakes for Kids

Planet 13 doubles dispensary floor square footage and cash registers at Las Vegas SuperStore

9.35am: US indices start higher

US benchmarks moved higher at the bell on Tuesday, recovering from a rout a day earlier that saw the S&P 500 post its biggest loss since May.

The Dow Jones added over 177 points, or 0.52%, to 34,148. The S&P 500 gained 22 points to 4,380. The Nasdaq exchange advanced over 76 points to 14,790.

“The better mood is a reflection of optimism about travel returning to some form of normalcy after the US announced it will allow fully vaccinated people to travel to the US,” said Fawad Razaqzada, market analyst at ThinkMarkets.com.

“This helped underpin travel stocks, while crude oil and energy firms also rebounded.

"On a micro level, Royal Dutch Shell shares advances after the company offered shareholders a pay-out from the sale of shale oil fields.”

Investors’ focus will turn to the US Federal Reserve meeting, which starts today and wraps on Wednesday.

The Federal Open Market Committee is expected to provide some confirmation that quantitative easing will be tapered in the coming months.

“How the dollar – and in turn – gold will react to this will be determined by the size and the speed of the reduction,” Razaqzada said.

“It is possible we could see renewed weakness for stocks if chairman Jerome Powell suggests QE will be tapered quicker than expected amid surging inflationary pressures around the world.”

7.06am: US stocks seen opening higher 

US benchmarks are seen opening higher on Tuesday following a sharp sell-off a day earlier, which saw the Dow declining the most in nearly a year due to possible contagion from the trouble China property market.

Futures for the Dow Jones Industrial Average are up 311 points, or 0.92%, while the S&P 500 futures are over 36 points, or 0.85% higher. Contracts for the Nasdaq exchange are up more than 115 points or 0.77%.

On Monday, US stocks finished lower, with the DJIA shedding 615 points or 1.78% to 33,970. The Nasdaq dropped 330 points, or 2.2% to 14,714. The S&P 500 lost 75 points, or 1.7% to end at 4,358.

“While most of the factors driving yesterday’s sell-off have been on the radar for a while, concerns over the solvency of Chinese retail estate company Evergrande were the proverbial straw that broke the camel’s back, helping to send the Hang Seng to thirteen-month lows in the process,” said Michael Hewson, chief market analyst at CMC Markets UK.

“That said it’s not as if this denouement on the part of Evergrande hasn’t been coming, with the only surprise being why Chinese regulators have allowed it to fester in the way it has.

“The absence of mainland Chinese markets as well as a holiday in Japan, may well have exacerbated yesterday’s sell off, but nonetheless it’s been quite clear for a while now that market nerves about the economic outlook have been rising for several days now.”

In London, FTSE 100 is also higher, rising 1.3% in midday Tuesday trading to 6,986.

Five more things to watch for on Tuesday:

Following yesterday’s news of a modest rise in the NAHB housing index in September, today brings the release of housing starts and permits data for August. While he expects some softening of single-unit starts in light of lower new home sales and rising inventories, Daiwa America’s chief economist Mike Moran expects a continuation of the recent positive trend in multi-unit starts to leave overall starts little changed.

The Federal Open Market Committee begins its rate-setting meeting and is expected to provide some confirmation that the Fed’s bond-buying will be tapered in the coming months when it winds up the two-day meeting on Wednesday.

Uber shares jumped 5% in pre-market trading after the San-Francisco-headquartered company raised its outlook for the third quarter. It now expects to report between $22.8 billion and $23.2 billion in gross bookings for the current quarter.

Chinese property developer Evergrande is teetering on the brink of default, with interest worth $83 million due on Thursday, according to S&P Global Ratings. S&P sees a default as likely.

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